The Quality Of Government, The Nature Of Property Rights And Debt Financing

China's economy since the reform and opening up for nearly 30 years of rapid growth, the world known as "growth miracle". There has been no a power to keep the nearly ten percent a year growth rate in 30 years. According to Allen(2005), China's legal environment and system environment, investor protection and corporate governance, accounting standards, the government quality around the world are in a relatively backward position. But the economic development, must have the above several conditions. So over the past 30 years of Chinese economy booming and how to explain? Zhou Li Ann(2007) pointed out that China's high-speed growth behind must have the corresponding system arrangement and provide these incentives. Willliam Easterly(2005) points out that growth will need to provide for "appropriate incentive", affect the motivation of any factors will affect the economic growth. This paper tries to explain the "incentive" exists, and proves that the "incentive" to have an impact on the China economic growth, then the impact on enterprise behavior.In the transition period of China, more and more economists begin to pay close attention to the Chinese government's role in the process of reform. Fan(2011) points out that the enterprise in the workforce, such as land, mineral, energy, infrastructure and investment and financing, and other factors of production, from input to output in the process of from tax, the control of regulators and other government departments. The quality of China's local governments to become one of the key factors influencing business decisions, the quality of local governments is good or bad will indirectly affect the enterprise behavior. So the quality of local government is how to affect the enterprise debt financing is one of important business decisions? According to the agency cost theory, theory of signal transmission and many other modern capital structure theory, the significance of debt financing has been greatly, debt financing is not just a way of enterprises access to capital, more important is a effective way to reduce agency cost, and the market, and investors such as a tool in communication, which can effectively enhance the value of the enterprise. According to the correction of the MM theory(1963), considering the income tax case, the value of the company will increase with the increase of debt.Based on Chinese a-shares from 2007 to 2010 listed companies as samples, the quality of government, the relationship between the nature of property rights and debt financing. This article USES the statistical analysis software stata 12.0 was carried out on the sample data descriptive statistics, the least squares regression analysis. Empirical results show that the better the quality of local government, the higher the level of debt financing; Relative to state-owned enterprises, private enterprises level of debt financing is more sensitive to the quality of the government. At the same time, the company size, cash flow, profitability, growth companies such as financial indicators will affect corporate debt financing decision.